B Communication — Legal Proceedings Report 2009

Nov 20, 2009

012 Smile.Communications Announces That it Has Been Notified of a Proposed Class Action Lawsuit

PETACH TIKVA, Israel, November 20, 2009 - 012 Smile.Communications Ltd. (NASDAQ: SMLC; TASE: SMLC) (The: "Company"). The Company announced that it was served with a purported class action lawsuit, along with a declarative and monetary personal suit, by a plaintiff alleging to be a subscriber of the Company. The plaintiff alleges that the Company sent to him, and possibly to other subscribers, commercial messages, in violation of the Communication Law (Bezeq and Broadcasting). The purported class action lawsuit and the declarative and monetary suit were filed in the District Court of the Central Region of Israel.

The plaintiff’s personal claim is for NIS 10,000 ($2,600). As the plaintiff has not yet determined the size of the group, the estimated amount of the entire claim is not yet known. The Company has not had an opportunity to review the claim with its counsel and is unable to provide any comments at this time and is unable to assess the lawsuit's chances of success.

About 012 Smile.Communications

012 Smile.Communications is a leading provider of communication services in Israel, offering a wide range of broadband and traditional voice services. The Company’s broadband services include broadband Internet access with a suite of value-added services, specialized data services and server hosting, as well as new innovative services such as local telephony via voice over broadband and a WiFi network of hotspots across Israel. Traditional voice services include outgoing and incoming international telephony, hubbing, roaming and signaling and calling card services. 012 Smile.Communications services residential and business customers, as well as Israeli cellular operators and international communication services providers through its integrated multipurpose network, which allows the Company to provide services to almost all of the homes and businesses in Israel.

012 Smile is a majority owned subsidiary of Internet Gold Golden Lines Ltd. (NASDAQ: IGLD) one of Israel's leading communications groups with a major presence across all Internet related sectors. Internet Gold and 012 Smile are part of the Eurocom Communications Group.

Forward-Looking Statements

This press release contains forward-looking statements that are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these forwardlooking statements include, but are not limited to, general business conditions in the industry, changes in the regulatory and legal compliance environments in the industries it is engaged, the failure to manage growth and other risks detailed from time to time in 012 Smile communications filings with the Securities Exchange Commission, including 012 Smile communications Annual Report on Form 20-F. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statement.

For additional information about 012 Smile.Communications Ltd., please visit the Company’s investors’ site at http://www.012.net.

For further information, please contact:

Ms. Idit Azulay 012 Smile.Communications Ltd +972-72-2003848 i.azulay@smile.net.il